Chapter12 - (10-15 min.) I+ a. Sale of long-term investment...

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(10-15 min.) E 12-16A I+ a. Sale of long-term F– k. Payment of long-term debt investment F+ b. Issuance of long-term note N l. Accrual of salary expense payable to borrow cash I+ m. Cash sale of land O- c. Increase in prepaid expenses I– n. Purchase of long-term investment F– d. Payment of cash dividend I– o. Acquisition of building by O+ e. Loss on the sale of cash payment equipment F– p. Purchase of treasury stock O+ f. Decrease in merchandise inventory F+ q. Issuance of common stock for cash NIF g. Acquisition of equipment by issuance of note O– r. Decrease in accrued payable liabilities O+ h. Increase in accounts O+ s. Depreciation of equipment payable O+ i. Amortization of intangible assets O+ j. Net income (10-15 min.) E 12-18A
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Net income…………………………………. $ 38,000 Adjustments to reconcile net income to net cash used for operating activities: Depreciation……………………………. . $ 17,000 Loss on sale of land…………………… 22,000 Increase in current assets other than cash……………………………… (24,000) Decrease in current liabilities………. .. (19,000 ) (4,000 ) Net cash provided by operating activities……………………………………. . $34,000 Evaluation : Operating cash flow is positive, but relatively weak, as shown by the fact that net cash provided by operating activities was less than net income. Normally, cash provided by operations is more
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This note was uploaded on 09/16/2011 for the course ACG 2021 taught by Professor Hornik during the Spring '08 term at University of Central Florida.

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Chapter12 - (10-15 min.) I+ a. Sale of long-term investment...

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